New Delhi: Finance Minister Nirmala Sitharaman on Wednesday announced that the due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.
Among other direct tax measures, the FM announced that all pending refunds to charitable trusts and non-corporate businesses and professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
Addressing a press conference at National Media centre to give details of the Atmanirbhar Bharat Abhiyan economic package of Rs 20 lakh crore, Finance Minister Sitharaman announced a host of measures of various sectors including MSMEs, Real estate, discoms, EPF, MFIs and non-banking financial institutions.
On the direct tax measures, FM added that the date of assessments getting barred on 30th September, 2020 has been extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September, 2021.
FM has also reduced TDS and TCS rates by 25 percent. This is applicable on all payments - interest, rent, brokerage, supply, etc. This will be enforced from tomorrow (May 14) till March 31, 2021. This reduction will release Rs 50,000 crore in hands of people, said FM.
These measures are part of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on Tuesday. Sitharaman also said the Rs 20 lakh crore economic package is to spur growth and build a self-reliant India. The package was finalised after consulting various stakeholders.
It may be noted that PM Modi in his speech had emphasised that bold reforms are needed to make the country self-reliant so that the impact of crisis such as COVID can be negated in future that ranges from supply chain reforms for agriculture, rational tax system, simple and clear laws. He also pointed that measures must be in place to attract investment and further strengthen 'Make in India'.
Nirmala Sitharaman said that she will hold several press conferences over the next few days to announce details of economic package related the Rs 20 lakh crore Atmanirbhar Bharat package.